MTL reports first quarter net loss of US$438,084

November 3, 2020

Margaritaville (Turks) Limited (MTL) for the three months ended August 31, 2020 reported revenues which decreased drastically by 99% for the period to US$20,417 (2019: US$2.03 million).

Cost of sales also went down by 96% to US$20,416 (2019: US$500,920) which resulted in a gross profit of US$1. Management noted the company, “the Government of the Turks and Caicos Island announced the closure of the only cruise port on the island of Grand Turks on March 16, 2020, due to Covid-19. At the time of closure, the expectation was that business would resume before the end of the summer. It is now 7 months since the suspension of business at the port and the earliest estimated for the resumption of cruising activity is December 2020. At the time of suspension of business activities at the port, there was no forward warning and so the company has done and continues to do the best at cost containment and keeping the facilities in a state of readiness to resume operations.”

Total expenses decreased 64% for the period in review to US$438,085 million in 2020, down from US$1.22 million in 2019. The decrease was associated with a 72% decline in administrative expenses from US$1.08 million to US$302,492. The Company also highlighted, “expenses incurred staff cost, utilities, insurance, depreciation and amortization. We continue to make every effort to contain our costs whilst ensuring that the facilities remain functional and in a state of preparedness.” Depreciation and amortisation rose 13% to US$73,093 (2019: US$64,564). No promotional expenses were incurred for the period under review (2019: US$13,913).


Consequently, the Company reported a net loss of US$438,084, relative to a net profit of US$317,302 booked twelve months earlier. Total comprehensive loss for the quarter amounted to US$438,084 relative to an income of US$317,302 million the previous year.

The twelve-month trailing loss-per-share was US$0.010, while for Q1 2020, LPS amounted to US$0.0065 compared to an EPS of US$0.0047 of the corresponding period of last year. The number of shares used in our calculations was 67,500,000. MTLJA and MTLUSD last traded on November 2, 2020 at $48.99 and $0.15, respectively.

MTL further noted, “At the time of this report, we have been informed that Carnival Corporation has resumed staffing efforts for its fleet out of the USA. The Grand Turk facility is almost exclusively served by Carnival Corporation owned Ships so that is a good signal for us.”

Balance Sheet Highlights:

The company, as at August 31, 2020, recorded total assets of US$4.78 million, a decrease of 20% when compared to US$5.96 million as at August 31, 2019. This was mainly as a result of a 72% decline in ‘Owing by related companies’ from US$1.46 million as at August 31, 2019 to US$409,509. Management explained that, “Funding for the activities for the quarter was facilitated through the repayment of US$406,000 owed by the parent company.”

Total Stockholders’ equity as at August 31, 2020 closed at US$3.86 million, a 20% decrease from US$4.85 million for the corresponding period last year. This resulted in a book value of US$0.0571 (2019: US$0.0718).


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